Exam 5: The Economics of Health Care

Suppose that in a market for used cars,there are good used cars and bad used cars (lemons).Consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon.Sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each.Buyers cannot tell if a used car is reliable or is a lemon.Based on this information,what is the likely outcome in the market for used cars?

In the United States in 2012,of the firms that employed more than 200 workers that offer health insurance to workers,about ________ of employees did not accept the coverage.

Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office,they ________ of health care services than they would if they paid a price that better represented the true cost of providing the service.

Figure 5-3 Figure 5-3 represents the market for medical services with and without insurance,and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 5-3.With insurance and a third-party payer system,what is the amount of the deadweight loss?

Some economists and policymakers who are in favor of government-provided health care believe that providing health care will

Because of the ________ of vaccinations,economic efficiency would be improved if more people were vaccinated.

Of the following high-income countries,which has the highest female life expectancy at age 65?

Health care is generally considered a normal good.Briefly explain what you would expect to see happen to spending on health care over time,with health care being considered as a normal good.

Economists John Cogan,Glenn Hubbard,and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent.

In the United States,the bulk of health care spending is paid by health insurance companies.Such a system is also called ________ where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider.

Health problems prevent people from working harder,which can lower a country's total income.This indicates that in effect,health problems

Between 1981 and 2011,deaths from kidney disease increased largely due to the effects of

In what ways do economists and policymakers who believe that market-based reforms are the key to improving the health care system criticize the Patient Protection and Affordable Care Act (ACA)?

Figure 5-1 Figure 5-1 represents the market for vaccinations.Vaccinations are considered a benefit to society,and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. -Refer to Figure 5-1.The efficient equilibrium price is

What is health insurance?

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

Typically,the lower the level of income per person in a country,the lower the level of spending per person on health care.This relationship between income and spending indicates that health care is a

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

________ tended to increase spending on health care in the United States.

In the United States in 2012,a majority of people received health care through